Most Economists Oppose Second Stimulus in Survey

By John Johnson,  Newser Staff
Posted Jul 9, 2009 6:30 PM CDT
Sale signs in a San Jose mall.   (AP Photo/Paul Sakuma)

(Newser) – Rumblings about the need for a second stimulus are growing louder, but most economists in a Wall Street Journal survey want no part of it. Only eight of 51 like the idea. The rest favor a wait-and-see approach, arguing that the full impact of the current stimulus won't be felt until next year. Meanwhile, don't expect a quick rebound on the jobs front: Figure on a rate of at least 10% through the end of 2010.

"The mother of all jobless recoveries is coming down the pike," one economist tells the Journal. He's in the no-second-stimulus camp because "lags in monetary and fiscal policy actions" need time to "work through the system." Another also counseled patience. "Every time the government gives money to consumers, it goes right into the bank. The consumer needs to rebuild savings, and that's a long, slow process."